Foreign Buyers Tax

The biggest change comes with plans to impose a 15% tax on home purchases in the Greater Golden Horseshoe area for buyers who are not citizens, permanent residents, or corporations of Canada.

A rebate would be available to people who later get citizenship or permanent resident status, foreign nationals, and international students.

Rent Control

Concurrently, the province will expand rent control provisions to all private rental units in Ontario. The Residential Tenancies Act currently imposes rent control on units constructed or used as a rental unit before November 1st, 1991. That leaves thousands of units, particularly in Toronto, with no limit on how much a landlord can increase the rent once per her.

Following legislative changes, rent increases in all private rental units will be limited to the annual rent increase guidelines.

Other Changes in the Housing Plan

The plan contains 16 measures in total. In addition to rent control and the tax on foreign buyers, the proposed measures are:

Updating the Residential Tenancies Act, including a standard lease agreement

Developing affordable housing on surplus provincial land assets

Allowing municipalities to introduce a vacant homes tax

Ensuring property tax for new apartment buildings is in line with rates for similar properties

Funding construction of new rental units through a development charge rebate

Allowing municipalities to use property tax to encourage development

Creating a provincial Housing Supply team that will work with developers and municipalities

Undertaking to identify and tackle other factors contributing to tax avoidance and excessive speculation in the housing market

Reviewing the rules for real estate agents

Launching an advisory group to advise the government on the state of the housing market

Educating people on their consumer rights in real estate deals

Partnering with the Canada Revenue Agency to ensure people pay the correct federal and provincial taxes on real estate transactions